Poquoson Region's Richest: Report

November 28, 1989|By MATHEW PAUST Staff Writer

POQUOSON — The City Council learned Monday night that Poquoson residents are the richest in Hampton Roads.

A study of the city's financial trends over the past nine years, prepared by Finance Director Carol P. MacDonald, shows that the city of nearly 12,000 residents is the number one locality for median household income, at $44,807, compared with the next highest, York County, at $38,421.

FOR THE RECORD - Published correction ran Wednesday, November 29, 1989. An article incorrectly stated that Poquoson Finance Director Carol P. MacDonald said Poquoson's real estate tax rate of 96 cents per $100 of assessed value is about 13 percent below the average rate for Virginia localities. The comparison cited by MacDonald applies to Poquoson's 1987 tax rate of 91 cents. A current comparison is unavailable. The article also incorrectly said that 95 pecent of Poquoson's income comes from residential real estate taxes. It should have said that 95 percent of the city's tax base is residential real estate. The article also incorrectly stated that Poquoson's debt is declining. What is declining is the city's debt service as a percentage of the total assessed value of real estate.

Poquoson also leads Hampton Roads at the other end of the income scale, with only about 19 percent of its families falling below $20,000 adjusted gross income.

This is the lowest percentage in Hampton Roads, which collectively has about 29 percent of families in that bracket. The statewide percentage of families earning under $20,000 is also 29 percent.

MacDonald said that despite the relative affluence of its residents, Poquoson's real estate tax rate of 96 cents per $100 of assessed value falls about 13 percent below the average rate for all Virginia cities and counties.

Other signs of the city's financial health are a steady decline of its debt, even including the money borrowed for construction of a new primary school.

"Capacity is available should City Council decide to undertake additional long-term borrowing to fund capital improvements," she said.

MacDonald added that the city's reserve funds are adequate to meet emergencies, avoid short-term borrowing and to generate enough interest on investments to provide a source of revenue that can be used for necessary capital improvements.

She cautioned, however, that because of a lack of much commercial or industrial tax base, Poquoson is more dependent than it should be on its residential real estate tax base, which provides 95 percent of the city's income.

"An active program of economic development, if successful, could result in taking some of the tax burden off of the homeowner for the improvement of city services," said MacDonald.

In other business, the council postponed action until its next meeting on a request for approval of a plan to divide about 9.3 acres into a 16-lot subdivision along Little Florida Road.

No opposition was expressed during a public hearing on the subdivision, to be called Key Oak Terrace. The Planning Commission has recommended approval of the proposal, which comes from C. K. Tudor, Bill J. Kaoudis and Joseph W. Pierce.

The plan would involve improvements to the drainage system in the area, which would cost the city an estimated $38,000.